Advantage has launched a product called the police service flexishare home ownership plan. The product is designed specifically for members of the police services, and should be especially useful for those police service employees who are still in their two year probationary period, as they only need to have completed six months service to qualify for the product.
The product is available to both first time buyers (FTB) and current home owners in the prime market who are serving police officers and staff in any of the UK’s police services. The product is based on the original single charge multi-part advantage flexishare product and offers the ability to move the mortgage should the police service employee relocate.
The key difference between the standard flexishare product and that designed for the police service federation is that on both the conventional mortgage and residential ownership loan parts of the financial arrangement, those within the police service benefit from tailored interest rates. This product is for residential purchases and is based on an affordability model not income multiples.
Borrowers are asked to pay an initial 5% deposit on the property; the applicant can then borrow between 15.1% and 80% of its value through the conventional mortgage part of the police service flexishare plan.
The Police Service Flexishare Home Ownership Plan is available with two rate options: two-year stepped fixed rate of 5.69% in year one and 6.69% in year two, reverting to LIBOR plus 2.50% thereafter or a three-year stepped fixed rate of 5.99% in year one, 6.99% in year two and 7.24% in year three, reverting to LIBOR plus 2.75% thereafter.
In addition to this, the residential ownership loan incorporated in the product will cover between 15% and 35% of the property value. Repayments for this have been set at a highly competitive rate of 2.99% for the entire term of the loan.
Finally, topping up the conventional mortgage and residential ownership loan is the equity loan funded by Advantage, which will share in any future increase or decrease in the property value - in the same proportion as the share borrowed in the residential ownership loan.
Keith Dearling, managing director at Advantage, said: “We are striving to release innovative products to help key workers in the UK to join the housing ladder. We are delighted to be able to offer the police force a full home ownership plan which we believe will meet their particular needs. When we launched the Advantage flexishare product it proved extremely popular and we are confident that the police service flexishare will be welcomed by all borrowers within the police service.”
Cathy Finch, company director at police federation mortgages, said: “The police service flexishare gives us the opportunity to help numerous officers and staff who have been struggling to either get onto or move up the housing ladder. It has been refreshing dealing with a company which has listened to the specific needs of our clients, and between us we have tailored their innovative offering to the actual needs of the police market place.”
